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TWO-TIERED MARKET IN BLACK ROCK
The U.S. real estate market continued to slow down in 2007, but sale prices in Black Rock, for most sectors of the market, continued to increase in value with the exception of home sales over $400,000. The median price of a single family home decreased from $375,000 for 2006 to $316,000 in 2007 as a result of fewer high end homes being sold in Black Rock. In fact, there were fewer home sales overall in 2007 than in 2006 in Black Rock (31 vs. 45).
A two-tiered market was created in 2007 when market forces put tremendous pressure on high end sales in Black Rock. If we look at homes that sold for under $400,000 in Black Rock in 2007, the median sale price increased by 5% and homes took an average of 89 DOM (DOM = days on market from listing to contract). However, for homes above $400,000, the median sale price declined by 9% and took an average of 146 DOM. This means that there is no slowdown on sales for most homes in Black Rock (those below $400,000). There was a dramatic decrease in the sale of high end homes in 2007 compared to 2006 (8 vs. 20), which dragged down the median home price.
Fairfield experienced a 4% decrease ($620,000) in median home values in 2007 ($635,000 in 2006) with significantly more homes sold than 2006 (741 vs. 651). This suggests that Sellers have finally grasped the reality of a buyer's market and lowered their prices accordingly resulting in stronger sales. Will high end Black Rock sellers follow suit?
Black Rock and Bridgeport properties, in general, have increased in desirability, which has offset the overall downward trend of the real estate market (prices stayed the same in Bridgeport in 2007 as in 2006).
Condo prices held steady in Black Rock, ($252,500 vs. $252,250), although fewer units were sold (16 vs. 26) and DOM increased (87 vs. 70). These figures do not include the new construction at Black Rock Village (see chart on page 5 for details on new construction sales). Co-op sales declined by 5% ($135,000 vs. $142,000), although more units were sold (29 vs. 13) and DOM held steady (97 vs. 95).
Multifamily properties in Black Rock continue to increase in value. Two-family properties increased by 3% in 2007 ($380,000 vs. $367,250) and more sold (15 vs. 10) in less time (89 vs. 122 DOM). Three-family properties increased by 5% with a median sale price of $420,000 vs. $397,000 with fewer sales (13 vs. 18) and took the same amount of time on market (75 vs. 75 DOM).
Aging baby boomers are moving from the suburbs to urban areas and waterfront/water view properties. Black Rock has the unique advantage of both urban amenities and a coastal location. Black Rock's proximity to Manhattan is also a key factor, which will be enhanced when the Black Rock Train Station opens in 2010 (estimated).
Disclaimer: Statistics were obtained from CMLS data which does not include private sales and may contain incomplete or inaccurate information.